Atomic Wallet Says Hack Affected 1% of Active Users, But Investors Claim Otherwise

A hack that extorted $35 million from Atomic Wallet users since June 2 affected less than 1% of its monthly active users, According for the company. Following the attack, Atomic Wallet — along with individual blockchain investigators — ramped up efforts to track down and return the stolen funds.

Trying to capitalize on the uproar, some verified scam Twitter accounts impersonated Atomic Wallet, claiming to help users recover lost funds while sharing a phishing link.

An on-chain researcher with the pseudonym ZachXBT further claims to have helped a victim recover $1 million in lost funds. However, the recovery process has yet to be disclosed, which ZachXBT will reportedly share “in time but not yet.”

feels huge cheer @Buffalo__ @bryan_smith_0 For helping us successfully rescue $1m from the Atomic Wallet hacker for one of the victims.

— zachxbt (@zachxbt) June 4, 2023

Despite the announcement of Atomic Wallet, many users continued to report loss of funds at the time of writing. Additionally, the community criticized the company’s attempt to minimize harm as a user. where did it go,

“The % doesn’t matter, the hacker only wants to focus on big fund wallets.”

This episode shows the importance of researching the right service provider when it comes to keeping crypto assets safe. Furthermore, it calls into question the “Not Your Keys, Not Your Coins” narrative promoted by many crypto wallet providers such as Atomic Wallet, as shown below.

ZachXBT’s investigation found that the largest amount lost by an individual in the Atomic Wallet hack on the Tron blockchain was $7.95 million in Tether (USDT). As of last update, the five biggest losses totaled $17 million.

Connected: Gate.io threatens legal action against rumor mongers

Over the weekend, June 4th, a hacker took control of a mobile phone owned by pro-XRP (XRP) advocate John Deaton. Deaton’s Twitter account was then used to shill LAW tokens.

John Deaton’s phone has been hacked today after days of relentless cyberattacks.

This is not a valid tweet. His account has been taken over. He has taken immediate steps to rectify the situation.

Please ignore this and all subsequent communications unless you… https://t.co/anOjGBloEi

— CryptoLaw (@CryptoLawUS) June 3, 2023

Soon after the tweet, Deaton and accounts representing him warned users about the hack and advised them to invest in the cryptocurrency.

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